Abstract
[Autom. eng. transl.] It may be optimal for a risk-averse company not to change its price even if it is optimal to change it if the company is risk-neutral. A price that owns this property is called an endogenous fixed price. There are fixed endogenous prices if, and only if, the variance of the quantity demanded, seen as a random variable by the company, presents an edge at the status quo price.
| Translated title of the contribution | [Autom. eng. transl.] Nominal risk aversion and rigidity |
|---|---|
| Original language | Italian |
| Title of host publication | La Nuova Economia Keynesiana |
| Pages | 243-262 |
| Number of pages | 20 |
| Publication status | Published - 1996 |
Keywords
- avversione al rischio
- prezzi fissi endogeni
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